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2000 – Silicon Is In

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2000 – Silicon Is In

In the second half of 2000, economic pressures affected the high-tech industry, including Intel. As we widened our product offerings in pursuit of new opportunities in the worldwide Internet economy, we had some missteps, but at the same time, we achieved some exciting successes, renewing our confidence in our expectations of continued long-term

growth.

The year 2000 was our 14th consecutive year of revenue growth, with sales of $33.7 billion. Net income was up 44 percent including acquisition-related costs; without these costs, net income would have been up 49 percent to $12.1 billion. In 2000, we spent $3.9 billion on research and development and $6.7 billion on capital expenditures. We continue to invest in key products and processes for the future.

Our markets and investments are increasingly international in scope. Our performance was strong around the world, with 59 percent of our sales coming from outside North America. We saw considerably improved sales in Japan in 2000, and sales in the Asia-Pacific region set a new record.

Dedication to operational excellence

In 2000, we turned our attention to a larger number of product areas. Throughout much of the 1990s, our primary business was the development of microprocessors for desktop computers, making relatively small modifications to adjust our products for other areas of the computing business. In the last few years, we have been transforming Intel to achieve a better match with high-growth opportunities in other parts of the computing industry—especially servers and networking and communications products, including wireless technologies. We have developed different microprocessors and silicon products designed specifically for the needs of each of these market segments as well as for our traditional segment, personal computers (PCs).

Read the full 2000 Intel Annual Report.